OREANDA-NEWS. RusRating has placed the credit rating assigned to OOO Life Factoring Company – "BB" on the international scale and "BBB" on the national scale, in both cases with a stable outlook – on its watch list. This means that the rating or rating outlook could change (either rise or fall) in response to additional information received from the Company or identified in public sources.

The rating is based on healthy earnings and a highly-diversified factoring portfolio of good quality.

Constraining factors include relatively modest capital adequacy, external funding highly concentrated by individual creditor, and a small market share in large-scale factoring deals.

About the Company

Life Factoring Company specialises in the provision of factoring services to small and mid-sized enterprises, in some cases via partnerships with state-owned SME Bank under federal government SME support programmes. The Company belongs to the LIFE Group headed by ProbusinessBank; that bank’s senior managers are its ultimate beneficiary owners.

Capital adequacy is relatively modest. External liabilities consist mainly of bank loans, with LIFE group resources accounting for a third of the total. Asset quality is healthy, thanks mainly to a well-diversified factoring portfolio with a moderate delinquency ratio and high percentage of recourse contracts. Earnings performance is healthy. Liquidity is sufficient. Risk sensitivity is high.